09/24. Declarations of Interest
There were no declarations of interest.
10/24. Draft Minutes of the Meeting Held 14 March 2024 (Appendix, Agenda Item 3)
The Minutes of the meeting held on 14 March 2024, were agreed as a true record.
Minute Number 11/23 – Reports from Internal Audit Service – HR System, Functionality and Utilisation
After discussing the IAS report on MHR iTrent, the P/CEO had requested the IAS to communicate with other colleges who also used the system, to identify process efficiencies. In response to a question from the Committee Chair, L. Glover explained that the IAS was not yet able to provide this. The Committee Chair asked for an update at the next meeting.
Minute Number 25/23 - Reports from Internal Audit Service – Sub-Contracting Standard
L. Glover had undertaken to follow-up with the ESFA to clarify whether it intended to communicate with colleges as to whether they had met the Standard or not. To date, the ESFA had not communicated with colleges. Mr Glover understood that the ESFA was currently assessing the quality of submissions. In response to a question, he confirmed that the IAS was assured on the quality and compliance with conditions of the college’s submission and if here had been any doubts over the quality of the college’s submission, would have raised them.
11/24. Report from Internal Audit Service (Appendix, Agenda item 4)
Mr Glover presented the following report (previously circulated) –
Internal Audit Progress Report – March 2024
- Validera had joined DFK UK & Ireland in December 2023. DFK was one of the world’s leading international accounting and business advisory associations. He provided assurance that Validera remained an independent company; the move enabled Validera to provide clients with access to a wider range of services and support if required.
- The Internal Audit Strategy (IAS) and Audit Plan had been approved by the Committee at its November 2023 meeting and there had been no amendments in the intervening period.
- Audit Briefs had been issued and timeframes agreed with management for the majority of audits, with one audit completed. All reviews were expected to be completed in accordance with the agreed budgeted days.
- Validera encouraged clients to follow its LinkedIn page where important sector updates were signposted. Mr Glover drew the Committee’s attention to the latest content and posts.
- Currently there were no individual findings arising from work undertaken which were considered significant enough to impact negatively upon the overall Annual Opinion in respect of the college’s risk management, governance and control processes.
13/24. Strategic Risk Register and Board Assurance Framework (Appendix, Agenda Item 5)
The Committee reviewed the 2023 – 2024 current Strategic Risk Register and Board Assurance Framework (previously circulated).
Whilst no risks were rated ‘red’, the strategic risk (Planned defunding of AGQs) remained ‘high amber’, being the most significant risk to the college at this point.
Regarding the Register, in response to questions, the EDoF explained –
- Board 13 (Risk that campuses are not sufficient to meet demand: teaching/workshop space is systematically or significantly insufficient to meet demand by more than 2 groups of students in any year) and FBO 25 (Refurbishment or Building projects disrupt teaching and learning or materially exceed budget). As the college was on track to enrol to predicted levels for 2024/25, the various estate projects being planned to develop capacity needed to be completed to time. The EDoF explained the mitigating actions being taken to reduce the risk of project overrun, including –
- Phasing of works;
- Undertaking works during half terms and between terms;
- Rotating staff and classes around affected campuses, to free up the areas affected by works. This approach was particularly appropriate for the Welsh Bridge Campus, as second year students would not be wholly on campus after Mat Half Term, as they prepared for exams.
- FBO 4 (Risk of failure to recruit planned HE learner numbers to meet planned targets for 2024-25 and beyond). The P/CEO advised that this was a rising risk. The college would utilise funding from the Higher Skills Investment Fund and from the Skills Accelerator Fund to focus on HTQ and HE recruitment. The college was currently procuring a range of marketing resources to promote the college’s higher education offer.
- FBO 22 - Failure to deliver planned AEB Budget allocation resulting in clawback of funding &/or material financial underperformance against budget. The P/CEO advised that this was a risk being kept under review, as enrolment numbers were below target. He also reported that, whilst the GLA had confirmed the maintenance of the funding the rate for 2024-25, there were risks regarding long-term viability and the potential for further changes in National policy in the medium term.
The Committee concluded that the strategic risks had been appropriately identified and the management actions reported were effectively mitigating these risks.
Resolved: RECOMMENDED TO BOARD that the Risk Register be approved.
ACTION: REPORT TO BOARD
14/24. Audit Recommendation Tracking Report (Appendix Agenda Item 6)
The Committee reviewed the Audit Recommendation Tracking Report (previously circulated).
The EDoF drew attention to implementation actions currently not on target. He explained with respect to –
- Core Financial Controls – Fixed Asset Register. The completion date had been moved so that the physical verification of high value assets would be undertaken annually in late July 2024. in preparation for external Audit.
- HR System Functionality. Some recommendations were not on target as the onboarding and performance review process was taking priority.
15/24. Irregularity and Fraud
None reported.
16/24. Risk
The Committee agreed that the risks relevant to the Committee have been appropriately identified and the management actions reported were effectively mitigating these risks.
17/24. Date of Next Meeting – Wednesday, 12 June 2023 from 5.30 p.m.
The meeting concluded at 6.26 p.m.